If you are having problems unscrambling words, try the Internet Anagram Server site.
The Archive of Misheard Lyrics contains many examples of mondegreens, and you can also submit your own (if you have any).
Be sure to enter (or at least read about) The Bulwer-Lytton Fiction Contest.
If you want to look something up, here's Wikipedia, the free encyclopedia (you might even end up contributing an article or two).
This site claims to have Headlines from Parallel Worlds. The best part is, you have a hand in creating them.
For free books online, try the Project Gutenberg site (or maybe the other Project Gutenberg site) or Bartleby.com (more reference than ficton).